What’s in Today’s Report:
- Is Inflation Coming Back? (It Better Not Be)
- An Inquiry on Gold
Futures are modestly lower following a night of disappointing economic data and more signs coronavirus is rebounding in Europe.
Chinese Industrial Production (4.8% vs. (E) 5.1%) and Retail Sales (-1.1% vs. (E) 0.3%) both missed estimates, while EU Flash GDP met very low estimates (-12.1%).
Britain added France to its list of quarantine countries, underscoring the steady rebound of coronavirus in Europe (although levels of the virus in Europe are still very low compared to the U.S.).
Today there are three notable economic reports: Retail Sales (E: 1.8%), Industrial Production (E: 3.0%) and Consumer Sentiment (E: 71.9). Consumer Sentiment is the most important number because it’s the most recent, although solid numbers in retail sales and IP will help reinforce the idea that economic recovery is still on-going (and hasn’t paused) and will help limit any downside in equities today. There’s also one Fed speaker today, Kaplan at 10:00 a.m. ET, but he shouldn’t move markets.